The Figure Given Below Represents the U $0$ $\$ 400$ $\$ 375$

question 4

Multiple Choice

The figure given below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton. $0$ $\$ 400$ $\$ 375$ Suppose the United States now imposes a countervailing duty on the imports of steel at the rate of $25 per ton. Which of the following is true in this context?

• A)The welfare of the world as a whole is reduced by $750 million.
• B)The welfare loss of Korea exceeds the welfare gain of the U.S.
• C)The producers in the U.S.lose whereas the producers in Korea gain.
• D)The world price level and volume of trade becomes similar to the free-trade condition.

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Definitions:

Camouflage

The ability of an organism to blend into its environment to hide from predators or to stalk prey.

Bilateral Symmetry

A symmetrical form in which an organism can be divided into mirrored halves along a single plane, common in the animal kingdom.

Nerve Cells

Specialized cells of the nervous system that transmit electrical and chemical signals throughout the body, also known as neurons.

Endodermal Tissue

The innermost layer of cells or tissue of an embryo in early development or the innermost layer of the plant root and shoot system.